SPX Reverses, Breaks 1,044 Support...

DJIA - 249.85 -2.51% SP500 - 29.92 -2.81% COMPQ - 52.44 -2.50% Russell 2000 - 17.45 -3.01% Exchange NYSE NASD Advancing 406 516 Declining 2,660 2,220 Oil $79.87 -2.87 Gold $1,040.40 -6.70 SOX 296.61 -10.65 VIX 30.69 +5.93 The VIX moved up and did confirm the move down in the SPX on Friday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLV -1.44%...XLP -1.56%...XLU -1.87% Weakest Sectors: XLF -4.68%...XLE -3.80%...XLB -3.58% All nine sectors moved lower on Friday. Healthcare, Consumer Staples, Utilities, Consumer Discretionary and Technology were stronger than the SPX -2.81%. Financial stocks stronger than XLF -4.68%: SPG, IVZ, NTRS, CME, SCHW, WFC, CB, ALL, AFL, TRV, USB, AXP and MS. Tech stocks stronger than XLK -2.65%: INTC, SYMC, ADP, YHOO, VZ ORCL, MSFT, ADBE, IBM, HPQ, TXN, T and QCOM. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,044 = October Horizontal Old Resistance 1,056 = Sep 25 R1 level 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target Key Support Levels 1,025 = 950 Breakout Chart Target The SPX and other broad indices sold off on Friday on above average volume giving back all of Thursday’s gain and then some to close below Wednesday’s low. Thursday’s support bounce failed to follow through and may have triggered some stops on Friday. The dollar gained strength as the Euro, stocks, oil and gold fell. Support areas are areas where buyers and sellers fight for control. Sometimes support bounces are clean and sometimes they come back. This time the fight was not over in one day. (click image to enlarge) Only two stocks in the NDX 100 closed higher. FSLR dropped another $4.54 increasing the straddle value to 29.10 from $25.25 on Thursday increasing the gain to 27% in two days. In our Stocks to Watch list only FAZ, PSYS, ALGT, VPRT, BYI, PETS, RCI, STRA, BDX, K, DLB and GXDX higher, every other stock moved lower. Also 19 stocks fell below their 30 DMA leaving just 18 stocks above their 30 DMA on Friday. Guidance: The intermediate term trend is still up while the short term trend turned back down from neutral. The broad indices reversed making a lower low in their bull flag patterns. Downward momentum reaccelerated and upward momentum disappeared on Friday. In Friday morning’s post we wrote, “The short term trend is neutral in a bull flag pattern. Watch for Momentum to stay above: SPX 1,056 INDU 9,822 COMPQ 2,081 RUT 576” Obviously price did not stay above the stated levels and as such alerted us to be prepared for a drop to the next level of support. Going into the new week it is realistic to be looking for a slow down in downward momentum and support bounce of some magnitude. If a stock you are trading is above its 20, 30 or 50 DMA and stays above that level and a recent horizontal breakout level, then expect its up trend to continue. If a stock has fallen below its 30 or 50 DMA and is unable to get back above that level on any support bounce during next week, realize the stock could be shifting to a sideways trading range or a potential down trend. Continue to trade the chart of the stocks you watch and follow your rules. AAPL -7.85 QCOM -0.94 GOOG -14.93 BIDU -15.48 NDX 100 stocks stronger than the NDX include: DTV, CEPH, WCRX, IACI, CELG, INTC, TEVA, HSIC, RYAAY, CHKP, VRTX, SYMC, GILD, PAYX, BRCM ORLY, SRCL, ADP, LINTA, AMGN, ROST, PPDI, YHOO, CTAS, FISV, ORCL, ESRX, MSFT, ADBE, APOL, COST, DISH, GENZ, GRMN and ALTR. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA K, JW.A, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, ICE, MUR, DLB, FAZ, RCI, ESRX, MHS, WCG, SNA Moving Above 30 DMA = O Moving Below 30 DMA = 19 AAPL, ATW, BLUD, CLB, CPLA, CTSH, FLS, GES, GPRO, HANS, HDB, ORCL, RBN, SWN, VAR, ACN, GR, JOYG, WMT Staying Below 30 DMA AFAM, BKC, BYI, EZPW, GXDX, HLF, JEC, PCLN, STRA, WAB, TRLG, PWRD, AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, ALGT, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Down

Futures Pointing to a Slightly Lower Open...

10:03 am ET - after an early selloff that took the SPX to 1,057, buying has rallied the index to 1,060...a few stocks are up this morning including: LVS, WYNN, FSLR, SOHU, BIDU, PCLN, QCOM... BMO – ES -4.00 and NQ -1.50 futures are lower in pre-market trading pointing to a lower open. AAPL -0.65, AMZN -0.90, GOOG -1.07 and BIDU -1.42 are lowerin pre-market trading. The Euro is down 33 pips in overnight trading and oil is quoting down 79 cents in electronic trading. XLE is quoted down 23 cents in pre-market trading. The short term trend is neutral in a bull flag pattern. Watch for Momentum to stay above: SPX 1,056 INDU 9,822 COMPQ 2,081 RUT 576 SPX Support = 1,061…1,056…1,044 Resistance = 1,075 Trading Down: AAPL, AMZN, BIDU Trading Up: PCLN, FSLR, FCX Look at these Charts… (click image to enlarge) At the Open on Friday SPY – QQQQ – XLE – ATW – V – AAPL – AMZN – BUCY – SNDK – CREE – DECK – NFLX – NKE – FCX – JOYG – CAT – POT – ADSK – ADBE – BDK – DOW – WLT – WHR – ACN – FLIR – HANS – AMX – NWSA – ISRG – GS – FAS – PNC – AKAM – ORLY – SYMC – CAM – PCLN –

SPX Bounces off 1,044 Suport....

Thursday's Post is Coming... DJIA + 199.89 +2.05% SP500 + 23.48 +2.25% COMPQ + 37.94 +1.84% Russell 2000 + 13.86 +2.45% Exchange NYSE NASD Advancing 2,504 1,918 Declining 552 805 Oil $79.87 +2.41 Gold $1,047.10 +16.60 SOX 307.26 +6.48 VIX 24.76 -3.15 The VIX moved down and did confirm the move up in the SPX on Thursday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLF +4.18%...XLB +2.98%...XLY +2.68% Weakest Sectors: XLU +0.87%...XLV +0.89%...XLP +1.63% All nine sectors moved higher on Thursday. Financials, Materials, Consumer Discretionary, Energy, and Industrials were stronger than the SPX +2.25%. Financial stocks stronger than XLF +4.18%: PRU, MET, IVZ, RF, AFL, SPG, C, PNC, AXP, ALL, BAC, ICE, STT, MS and ETFs UYG and FAS. Tech stocks stronger than XLK +1.93%: SYMC, MA, AMAT, HPQ, EMC, AMT, GLW, DELL, CSCO, ADBE, AAPL, TXN and GOOG. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The SPX opened higher and formed a strong trend day all day long forming six intra-day bull flags in the process of breaking through its 1,056 and 1,061 resistance areas before closing at 1,066.11. The INDU, COMPQ and RUT all also had strong trend days. Many individual stocks from our watch list outperformed the move in the broad indices. Look at FCX, CAT, BDK, DE, DOW, WHR, JOYG, BUCY, SPG, JPM and BAC. Advancing issues in the NDX 100 increased from three stocks on Wednesday to 87 on Thursday. Positive earning reports led to large gains from AKAM +13.05%, SYMC +12.78% and ORLY +11.91%. FSLR dropped $25.11 or -16.57% after reporting positive EPS with lower than expected revenue after the close on Wednesday. We shared the real time virtual FSLR Straddle trade on Wednesday at 9:50:31 buying 6 Nov 150 calls and puts for a cost of $22.90 per straddle. The FSLR straddle closed with a price of $25.25 for a gain of $2.30 or 10% in one day. We will monitor FSLR to see if the trend continues in the direction of the gap over the next week as is typical for the stock over the past year. Guidance: The intermediate term trend is up while the short term trend bounced up from the 1,044 support. The broad indices bounced in bull flag patterns. Downward momentum was gone and upward momentum accelerated on Thursday. Watching for the support bounce paid off on Thursday. The support bounce moved above SPX 1,056, INDU 9,822, COMPQ 2,081 and RUT 576 as we alerted you to look for in Wednesday’s post. Many individual stocks in our watch list formed bull flag support bounces on Thursday. Thursday was an entry signal on many charts. Continue to trade the chart of the stocks you watch and follow your rules. Breakout: AKAM, AMZN, V Potential Breakout Setups: FLIR, WHR, DE, GOOG, MA, FLS, AXP, HANS Pulling Back: Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: PCLN Flag Setups and Bounces in Progress: JEC, JCI, AAPL, BDK, NTAP, DOW, DD, WLT, ADBE, JCG, CAM, BUCY, SPG, NKE, FCX, JOYG, NWSA, AMX, ADSK, CAT, XLNX, TXN, POT, INTC, AGU Potential Down Trend Setups: APOL, X, BIDU, BAC, MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN, ORCL, ZION, FAST, FWLT, AGCO, FSLR AAPL +3.95 QCOM +0.64 GOOG +10.75 BIDU -3.43 NDX 100 stocks stronger than the NDX include: AKAM, SYMC, ORLY, URBN, ESRX, JNPR, LRCX, FLEX, JOYG, WCRX, WYNN, FWLT, LIFE, NVDA, LOGI, NWSA, SBUX, MXIM, CA, MRVL, MICC, HOLX, PCAR, VRSN, SHLD, KLAC, AMAT, TEVA, BBBY, RYAAY, LBTYA, DTV, DISH, LINTA, NTAP, CMCSA, ISRG, DELL, CTXS, STLD, VRTX, CSCO, ADBE EXPD, COST, MCHP, AAPL and GOOG. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA CTSH, AAPL, CLB, K, JW.A, JOYG, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, CPLA, ICE, MUR, DLB, ORCL, VAR, FAZ, RCI Moving Above 30 DMA = 16 ATW, BLUD, ESRX, FLS, GES, GPRO, HANS, HDB, MHS, RBN, SWN, WCG, ACN, GR, SNA, WMT Moving Below 30 DMA = 1 AFAM Staying Below 30 DMA BKC, BYI, EZPW, GXDX, HLF, JEC, PCLN, STRA, WAB, TRLG, PWRD, AMED, AMX, BIDU, CAM, FSLR, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, JOSB, TDG, SPWRA, FAS, UYG, ESI, ALGT, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral

Futures Pointing to a Slightly Higher Open...

BMO – ES +2.25 and NQ +1.50 futures are lower in pre-market trading pointing to a lower open. AAPL -0.50, AMZN +0.14, GOOG -0.10 and BIDU -1.01 are mixed in pre-market trading The Euro is up 10 pips in overnight trading and oil is quoting up 41 cents in electronic trading. XLE is quoted down 29 cents in pre-market trading. FSLR is down 20.97 or -13.83% in pre-market trading following lower than expected revenues and slightly above expectations on EPS after the market on Wednesday. The short term trend is down in a bull flag pattern.

Watch for Momentum to move above: SPX 1,056 INDU 9,822 COMPQ 2,081 RUT 576 SPX Support = 1,044…1,025 Resistance = 1,056…1,061…1,075 Trading Down: FSLR, WHR Trading Up: V, FCX, GS Look at these Charts… (click image to enlarge) At the Open on Wednesday SPY – QQQQ – XLE – ATW – V – AAPL – AMZN – BUCY – SNDK – CREE – DECK – NFLX – NKE – FCX – JOYG – CAT – POT – ADSK – ADBE – BDK – DOW – WLT – WHR – ACN – FLIR – HANS – AMX – NWSA – ISRG – GS – FAS – FAZ – AKAM – CAM – PCLN –

SPX Breaks 1,061 Support, Falls to 1,042 Horizontal Support...

DJIA - 119.48 -1.21% SP500 - 20.78 -1.95% COMPQ - 56.48 -2.67% Russell 2000 - 20.63 -3.51% Exchange NYSE NASD Advancing 323 420 Declining 2,783 2,320 Oil $77.46 -2.09 Gold $1,030.50 -4.90 SOX 300.78 -8.66 VIX 27.91 +3.08 The VIX moved up and did confirm the move down in the SPX on Wednesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLP -0.27%...XLU -1.00%...XLV -1.02% Weakest Sectors: XLE -3.30%...XLF -3.31%...XLB -3.08% All nine sectors moved lower on Wednesday. Consumer Staples, Utilities, Healthcare, and Technology were stronger than the SPX -1.95%. Financial stocks stronger than XLF -3.31%: AOC, SCHW, TRV, CB, BK, STT, ALL, ICE, PNC, MET, CME, JPM, BAC, MMC and USB. Tech stocks stronger than XLK -1.47%: VZ, T, QCOM, IBM, MA, ADP, HPQ, TXN, AMT and GOOG. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,056 = Sep 25 R1 level 1,061 = Sep 16 S1 Level 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support Key Support Levels 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target During the first hour of trading it appeared that downward momentum on the SPX and INDU was continuing to weaken. After the first hour of trading the downward momentum began to gain strength and the SPX broke below its 1,061 support then its 1,056 support and dropped to its 1,044 horizontal support area finishing Wednesday at 1,042.63. Today was another classic example of the SPX breaking one level of support and falling to the next and then breaking that level and falling to the next exactly as we teach. The COMPQ and RUT were weak all day and fell the most. The RUT appears to have formed a double top with a close below its 576 prior support. Only 3 stocks in the NDX 100 BIDU, QCOM and FSLR were positive. 97 of the 100 moved lower led by earnings reaction on ILMN -19.90% and APOL -17.69%. GRMN -16.36% on news of slowing business from a competitor. Ironically after the market closed, FSLR reported revenues lower than expectations even though EPS was 1.79 vs. 1.74. The stock dropped 24.08 or -15.89% in after-hours trading. Opened Trade In our Options webcast Wednesday morning we placed a real time virtual Straddle trade on FSLR at 9:50:31 buying 6 Nov 150 calls and puts for a cost of $22.90 per straddle. I’ll follow up on this trade on Thursday after we see tomorrow’s gap and option pricing. Closed Trade In our Monday evening AT webcast we placed a counter trend real time virtual trade on the SPY. It was an OCO bracket stop order to buy 100 Nov 106 puts if SPY hit 106. 56 with a sell stop at 1.57 and a sell limit if SPY reached 104.60. The order filled Tuesday at 8:00:16 at 2.18 per contract. This morning we moved the stop to breakeven and then to 2.53. Our sell limit filled today at 1:26:35 at 3.20 per contract. Total in was $21,950 and net out was $31,850 both after commissions for a net return of $9,900 or 45.1% in two days. The SPY moved down just $1.94 from entry to exit. Guidance: The intermediate term trend is up while the short term trend is down. The broad indices are in bull flag patterns. Downward momentum accelerated on Wednesday. Continue watching for a potential support bounce. Watch for a move above 1,056 on the SPX and 9,822 on the INDU to indicate momentum beginning to move up. On the COMPQ a move above 2,081 and 576 on the RUT is the minimum level to indicate momentum beginning to shift on Thursday. Continue to trade the chart of the stocks you watch and follow your rules. Breakout: AMZN Potential Breakout Setups: AXP, HANS, V Pulling Back: FLIR, WHR, DE, GOOG, MA, FLS Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI Flag Setups and Bounces in Progress: AAPL, BDK, NTAP, DOW, DD, WLT, ADBE, JCG, CAM, BUCY, PCLN, SPG, NKE, FCX, AKAM, JOYG, NWSA, AMX, ADSK, CAT, XLNX, TXN, POT, INTC, AGU Potential Down Trend Setups: APOL, X, BIDU, BAC, MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN, ORCL, ZION, FAST, FWLT, AGCO, FSLR AAPL -4.97 QCOM +0.63 GOOG -7.99 BIDU +13.17 NDX 100 stocks stronger than the NDX include: BIDU, QCOM, FSLR, AMZN, SRCL, EXPD, PAYX, CMCSA, ADP, DTV, CEPH, COST, CHRW, VRTX and TEVA. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA CTSH, AAPL, CLB, K, JW.A, JOYG, DECK, VPRT, AMZN, SLGN, NFLX, DV, MCD, CPLA, AFAM, ICE, MUR, DLB, ORCL, VAR, FAZ, RCI Moving Above 30 DMA = 0 Moving Below 30 DMA = 24 ATW, BKC, BLUD, BYI, ESRX, EZPW, FLS, GES, GPRO, GXDX, HANS, HLF, JEC, MHS, PCLN, RBN, STRA, SWN, WAB, ACN, GR, SNA, TRLG, PWRD Staying Below 30 DMA AMED, AMX, BIDU, CAM, FSLR, HDB, GMCR, APEI, MOS, PCP, PWR, WRC, NIHD, WMT, JOSB, TDG, SPWRA, FAS, UYG, ESI, ALGT, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Down

Futures Pointing to a Lower Open...

BMO – ES -4.25 and NQ -3.50 futures are lower in pre-market trading pointing to a lower open. AAPL -0.36, AMZN -0.86, GOOG -3.29 and BIDU +4.46 are mixed in pre-market trading The Euro is down 27 pips in overnight trading and oil is quoting down 77 cents in electronic trading. XLE is quoted up 15 cents in pre-market trading. The short term trend is down in a bull flag pattern.

Watch for Momentum to move above: SPX 1,073 INDU 9,920 COMPQ 2,131 RUT 591 SPX Support = 1,061…1,056…1,044 Resistance = 1,075…1,100 Trading Down: AAPL, AMZN, GOOG, SNDK Trading Up: NFLX, DOW, FAZ Look at these Charts… (click image to enlarge) At the Open on Wednesday SPY – QQQQ – XLE – ATW – AAPL – AMZN – BUCY – SNDK – CREE – DECK – NFLX – NKE – FCX – JOYG – CAT – POT – ADSK – ADBE – BDK – DOW – WLT – WHR – ACN – FLIR – HANS – AMX – NWSA – ISRG – GS – FAS – FAZ – AKAM – CAM – PCLN –

SPX Reaches 1,061 Support...

DJIA + 14.21 +0.14% SP500 - 3.54 -0.33% COMPQ - 25.76 -1.20% Russell 2000 - 6.69 -1.13% Exchange NYSE NASD Advancing 1,053 889 Declining 1,983 1,822 Oil $79.55 +0.87 Gold $1,035.40 -7.40 SOX 309.44 -8.00 VIX 24.83 +0.52 The VIX moved up and did confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move up in the COMPQ. Strongest Sectors: XLE +0.89%...XLV +0.42%...XLP +0.08% Weakest Sectors: XLY -1.71%...XLI -1.36%...XLB -0.81% All nine sectors moved lower on Monday. Consumer Discretionary, Technology, Consumer Staples, Industrials and Healthcare were stronger than the SPX -0.33%. Financial stocks stronger than XLF -0.75%: AXP, CB, USB, BAC, JPM, C, PNC, AOC, WFC, SCHW, TRV, GS, ICE, MMC, RF and NTRS. Tech stocks stronger than XLK -0.52%: VZ, T, QCOME, IBM, TXN, MA, MSFT, ADP and INTC. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The SPX fell to its 1,061 support level and formed a spinning top. The INDU formed a spinning top and bullish harami as it closed higher on Tuesday. The COMPQ and RUT formed a large black candle which is the third down day in a three black crows pattern. The COMPQ was heavily impacted by 11% drops in both BIDU and WYNN. Pull backs in up trending stocks GOOG, AAPL, FSLR, AMZN and CERN also added to the COMPQ move down on Tuesday. The bullish harami in the INDU and the spinning top in the SPX are potential short term trend reversal setups. Three black crows often precede a short term rally. Guidance: The intermediate term trend is up while the short term trend is down. The broad indices are in bull flag patterns. Downward momentum slowed in the INDU and SPX on Tuesday. It is too early to say the pull back is over, but it is time to start watching for a potential support bounce. Watch for a move above 1,073 on the SPX and 9,920 on the INDU to indicate momentum is beginning to move up. On the COMPQ a move above 2,131 and 591 on the RUT is the minimum level to indicate momentum beginning to shift on Wednesday. Continue to trade the chart of the stocks you watch and follow your rules. Breakout: AMZN, FLIR Potential Breakout Setups: AXP, HANS Pulling Back: BUCY, WHR, DE, PCLN, GOOG, APOL, MA, AAPL, FLS, CAM, JCG, ORCL, BDK, DOW, DD, WLT, V, ADBE Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI, NTAP, SPG, ZION, FAST, FWLT Flag Setups and Bounces in Progress: NKE, FCX, AKAM, JOYG, NWSA, AMX, ADSK, AGCO, CAT, XLNX, TXN, POT, FSLR, INTC, AGU Potential Down Trend Setups: X, BIDU, BAC, MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL -5.11 QCOM +0.32 GOOG -5.92 BIDU -49.31 NDX 100 stocks stronger than the NDX include: VRTX, CEPH, SRCL, LIFE, ILMN, PPDI, ESRX, BIIB, LBTYA, QCOM, FISV, GENZ, FLIR, AMGN, XRAY, SIAL, DISH, INTU, PDCO, CTAS, HSIC, MICC, PAYX, CTSH, MSFT and APOL. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, CLB, K, FLS, GXDX, BIDU, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, GES, ICE, MUR, BYI, MHS, SNA, BKC, DLB, WAB, MON, X, ORCL, FSLR, ALGT, RBN, JEC, VAR, GR, PWRD, FAZ Moving Above 30 DMA = 3 BLUD, ESRX, RCI Moving Below 30 DMA = 5 AMED, AMX, CAM, HDB, GMCR Staying Below 30 DMA APEI, MOS, PCP, PWR, WRC, NIHD, WMT, JOSB, TDG, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Down

Futures Pointing to a Flat Opening as BIDU Gaps Down...

9:52 am ET - beginning to see a small rally as SPY up 30 cents...JPM up 41 cents...CAT up 33 cents...DE up 16 cents... 9:40 am ET - BIDU opens at 355.71 and rallys up to 370...SPY up 4 cents...XLE up 27 cents... BMO – ES -0.75 and NQ -3.75 futures are mixed in pre-market trading pointing to a flat to open. AAPL -0.75, AMZN -1.30, GOOG -3.21 and BIDU -84.08 are lower in pre-market trading The Euro is up 12 pips in overnight trading and oil is up 19 cents in electronic trading. XLE is up 36 cents in pre-market trading. BIDU you heard me speak about price for perfection and any disappointment leading to a major drop in price. RIMM was a recent example of this concept. I mentioned in Monday night’s post about BIDU lower Q4 guidance…this morning the stock is down over $84…now that is an example of the market saying they don’t like the negative surprise. Since BIDU is approximately 0.5% weighting in the NDX, the QQQQ is down only 3 cents in pre-market trading. The QQQQ price is an example of diversification offsetting a gap down. SPX Support = 1,061…1,056…1,044 Resistance = 1,075…1,100 Trading Down: MOS, BIDU, AAPL, GOOG Trading Up: BUCY, PCLN, MRVL, WLT Look at these Charts… (click image to enlarge) At the Open on Tuesday SPY – QQQQ – XLE – POT – AAPL – AMZN – PCLN – MRVL – SNDK – HANS – WYNN – FSLR – GOOG – BIDU – FAS – ZION – ADSK – ADBE – MA – ISRG – NKE – BDK – CAT – DOW – WLT – PCP – PWRD – FUQI – WHR – JOYG – BUCY – CAM – FCX – FLIR –

SPX...Yellow Alert Changes to Red...

DJIA - 104.22 -1.05% SP500 - 12.65 -1.17% COMPQ - 12.62 -0.59% Russell 2000 - 7.18 -1.19% Exchange NYSE NASD Advancing 714 786 Declining 2,323 1,933 Oil $78.68 -1.82 Gold $1,042.80 -13.00 SOX 317.44 +1.03 VIX 24.31 +2.04 The VIX moved up and did confirm the move down in the SPX on Monday. The SOX moved up and did NOT confirm the move up in the COMPQ. Strongest Sectors: XLY -0.60%...XLK -0.66%...XLP -0.77% Weakest Sectors: XLF -2.58%...XLB -2.57%...XLE -1.65% All nine sectors moved lower on Monday. Consumer Discretionary, Technology, Consumer Staples, Industrials and Healthcare were stronger than the SPX -1.17%. Financial stocks stronger than XLF -2.58%: AXP, AOC, CME, MMC, SPG, TRV, GO, MS, SCHW, TROW, ICE, CB and NTRS. Tech stocks stronger than XLK -0.66%: MSFT, TXN, INTC, GOOG, ADP, QCOM, AMAT, IBM and ORCL. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,075 = 875 Breakout Chart Target 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The SPX, INDU and COMPQ broke below the low of their high day. broke AMZN, BUCY, NFLX, DECK, WHR and MSFT which moved higher on Friday from better than expected earnings continued their moves up on Monday.. Well the probability, we wrote about in Friday’s post, that the current horizontal flag pattern will follow the pattern of the prior four horizontal flag patterns since June, and break support and move down for one or more days happened on Monday. We hope that short term traders took advantage today. Even though the NDX moved lower on Monday, the number of rising stocks increased from 11 on Friday to 27 on Monday. The NDX was relatively stronger than the other indices today down just -0.39%. Monday after the close BIDU reported better than expected earnings but lowered their Q4 guidance by more than 10% due to the introduction of a new system to sell search based advertising which is expected to be in service December 1. The new system is expected to improve business over the long term. BIDU dropped $56.98 or -13.16%. Guidance: The intermediate term trend is up while the short term trend is down breaking below the support its horizontal flag pattern. The broad indices broke support and moved towards its next support level. The Yellow Alert on the SPX, COMPQ and INDU turned to Red which is an exit signal for some short term traders when the indices broke the low of the high day. The RUT continued its short term down trend. Continue to trade the chart of the stocks you watch and follow your rules. Breakout: AMZN, WHR, DE, FLIR, PCLN, JOYG, BUCY, AKAM, GOOG Potential Breakout Setups: AXP, HANS, APOL Pulling Back: BIDU, MA, AAPL, FLS, CAM, FCX, JCG, ORCL, BDK, NKE, DOW, DD, WLT, V, AMX, NWSA, ADBE Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI, NTAP, SPG, ZION, FAST, FWLT, X Flag Setups and Bounces in Progress: ADSK, AGCO, CAT, XLNX, TXN, POT, FSLR, INTC, AGU Potential Down Trend Setups: BAC, MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL -1.46 QCOM -0.02 GOOG +0.52 BIDU -2.34 NDX 100 stocks stronger than the NDX include: AMZN, MRVL, PAYX, MSFT, IACI, FSLR, GRMN, WYNN, CTAS, BIIB, EXPE, STX, LLTC, URBN, HANS, PCAR, FISV, ILMN, BBBY, XLNX, SPLS, INTC, INTU, ALTR, GOOG, SHLD, ADP and QCOM. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, CLB, K, FLS, GXDX, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, AMX, MUR, BYI, MHS, SNA, BKC, DLB, WAB, MON, X, ORCL, FSLR, ALGT, RBN, JEC, VAR, GR, PWRD Moving Above 30 DMA = 1 AMED, FAZ Moving Below 30 DMA = 9 APEI, ESRX, MOS, PCP, PWR, RCI, WRC, NIHD, WMT Staying Below 30 DMA BLUD, JOSB, TDG, SPWRA, FAS, UYG, ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Down

Futures Pointing to a Flat to Slightly Higher Open...

12:15 pm ET - the SPX has turned from positive to negative from an intra-day reversal that started around 11:15 am ET at SPX 1,090 with the sell off taking the SPX down to 1,067...the drop is being attributed to a rise in the dollar as the Euro dropped 130 pips from 1.501 to 1.488... BMO – ES +0.25 and NQ +0.25 futures are slightly higher in pre-market trading pointing to a flat to slightly higher open. AAPL +0.12, AMZN +1.51, GOOG +2.05 and BIDU +2.74 are higher in pre-market trading The Euro is up slightly in overnight trading and oil is up 37 cents in electronic trading. XLE is up 22 cents in pre-market trading. The key support level is 1,075, if broken look for the SPX to move towards 1,061. If the 1,075 holds look for the index to trade between support and 1,100 resistance. SPX Support = 1,075…1,061 Resistance = 1,100…1,133 Trading Down: Trading Up: AMZN, PCLN, MRVL, CAT, FCX, DOW, WLT Look at these Charts… (click image to enlarge) At the Open on Monday SPY – QQQQ – XLE – POT – AAPL – AMZN – PCLN – MRVL – HANS – WYNN – FSLR – GOOG – BIDU – FAS – ZION – ADSK – ADBE – MA – ISRG – NKE – BDK – CAT – DOW – WLT – PCP – PWRD – FUQI – WHR – JOYG – BUCY – CAM – FCX – FLIR –

SPX Closes Near 1,075 Support...

DJIA - 109.13 -1.08% SP500 - 13.31 -1.22% COMPQ - 10.02 -0.50% Russell 2000 - 12.52 -2.04% Exchange NYSE NASD Advancing 734 629 Declining 2,292 2,065 Oil $80.50 -0.69 Gold $1,055.80 -2.20 SOX 316.41 -10.43 VIX 22.27 +1.58 The VIX moved up and did confirm the move down in the SPX on Friday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLK -0.28%...XLY -0.39%...XLP -0.99% Weakest Sectors: XLB -1.99%...XLE -1.93%...XLI -1.77% All nine sectors moved lower on Friday. Technology, Consumer Discretionary, Consumer Staples and Healthcare were stronger than the SPX -1.22%. Financial stocks stronger than XLF -1.44%: TROW, PNC, BK, CME, C, TRV, SCHW, JPM, AOC and NTRS. Tech stocks stronger than XLK -0.28%: MSFT, EMC, HPQ, DELL, GLW, MA, CSCO and GOOG. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target AMZN, BUCY, NFLX, DECK, WHR, MSFT, TROW and SYNA made big moves on Friday after reporting strong earnings. That was not enough to keep the broad indices from selling lower. The SPX which was up 2 plus points just after the open, trended down for the rest of the day. (click image to enlarge) The failure of the broad indices to move higher, with strong earnings and moves in stocks reporting earnings, increases the probability that the current horizontal flag pattern will follow the pattern of the prior four horizontal flag patterns since June, and break support and move down for one or more days. See Wednesday and Thursday's post for more on the horizontal flag patterns. Earnings vs. Estimates: BUCY $1.21 vs. 86 cents NFLX 52 cents vs. 46 cents DECK $2.59 vs. $2.25 TROW 50 cents vs. 46 cents (click image to enlarge) Earnings vs. Estimates: AMZN 45 cents vs. 33 cents MSFT 40 cents vs. 32 cents SYNA 48 cents vs. 42 cents WHR $1.15 vs. 77 cents There were only 11 stocks in the NDX 100 that moved higher. Only 18 outperformed the NDX -0.55%. That indicates how significant that the moves up in AMZN, MSFT and BIDU were as the NDX lost less than half as much as the SPX even though only 11 stocks moved higher. (click image to enlarge) Guidance: The intermediate term trend is up while the short term trend is in a short term horizontal flag pattern. The broad indices moved down from resistance to support. Continue to watch for a potential break below Wednesday’s low for a short term exit signal. Wednesday is still the high day for the SPX, COMPQ and INDU. The SPX closed below the low of the high day by 1.17 points. The COMPQ and INDU closed above the low of the high day. The SPX, COMPQ and INDU are still on Yellow Alert. The RUT is in a short term down trend from its high day on Monday. If support is broken on a chart the most probable move is for price to move to the next support level. Determine whether you want to take that additional draw down or not. Trade the chart of the stocks you watch and follow your rules. Breakout: AMZN, WHR, BIDU, MA, DE, FLIR, PCLN, CAT, ADSK, AAPL, JOYG, BUCY, FLS, AKAM, CAM, FCX, JCG, GOOG, POT Potential Breakout Setups: HANS, ORCL, APOL Pulling Back: BDK, NKE, DOW, DD, WLT, AXP, V, AMX, NWSA, ADBE, AGU Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, JCI, NTAP, FSLR, INTC, SPG, ZION, BAC, FAST, FWLT, XLNX, X, TXN Flag Setups and Bounces in Progress: AGCO Potential Down Trend Setups: MRVL, HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL -1.26 QCOM -0.38 GOOG +0.44 BIDU +19.71 NDX 100 stocks stronger than the NDX include: AMZN, MSFT, BIDU, JOYG, EXPE, ISRG, INFY, LINTA, CHKP, FLIR, DELL, CSCO, GOOG, SRCL, PCAR, HANS, XRAY and AKAM. Stocks to Watch on Monday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, CLB, ESRX, NIHD, K, FLS, GXDX, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, AMX, APEI, MUR, BYI, MHS, SNA, BKC, WMT, DLB, MOS, WAB, MON, X, ORCL, FSLR, ALGT, RBN, JEC, PCP, PWR, RCI, VAR, WRC, GR Moving Above 30 DMA = 1 PWRD Moving Below 30 DMA = 7 AMED, BLUD, JOSB, TDG, SPWRA, FAS, UYG Staying Below 30 DMA ESI, EBAY, BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, FAZ, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral, RUT = Down

Futures Pointing to a Higher Open...

BMO – ES +4 and NQ +14.50 futures are higher in pre-market trading pointing to a higher open. AAPL +0.93, GOOG +3.12 and BIDU +5.14 are higher in pre-market trading The Euro is up slightly in overnight trading and oil is up 26 cents in electronic trading. XLE is up 44 cents in pre-market trading. AMZN is up 15.60 or 16.77% in pre-market trading after better than expected earnings after the close on Thursday. MSFT and WHR are up on strong earnings this morning. Friday’s Key Earnings: MSFT, WHR, SLB, HON, IVZ SPX Support = 1,075…1,061 Resistance = 1,100…1,133 Trading Down: AGU, Trading Up: AMZN, MSFT, WHR, JOYG Look at these Charts… (click image to enlarge) At the Open on Friday SPY – QQQQ – XLE – HAL – AGU – POT – AAPL – PCLN – HANS – WYNN – FSLR – GOOG – BIDU – FAS – AXP – ZION – ADSK – ADBE – AKAM – MA – ISRG – NKE – BDK – CAT – DOW – WLT – PCP – FUQI – WHR – JOYG – CAM – FCX – ARO – LVS – AA – USD – FLIR –

SPX Regains Wednesday's Losses...

What a day...a great day in the market and a very busy day...a total of almost 7 hours in three different webcasts starting at the market open and finishing in the evening...Thursday's post is coming... There was an server issue last night with the posting feature...it is fixed so here is the post... DJIA + 131.95 +1.33% SP500 + 11.51 +1.06% COMPQ + 14.56 +0.68% Russell 2000 + 8.27 +1.37% Exchange NYSE NASD Advancing 2,046 1,692 Declining 992 1,004 Oil $81.19 -0.18 Gold $1,058.00 -5.90 SOX 326.84 +4.17 VIX 220.69 -1.53 The VIX moved down and did confirm the move up in the SPX on Thursday. Thursday was a new 52 week low in the VIX. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLF +2.96%...XLY +1.32%...XLB +1.19% Weakest Sectors: XLP +0.17%...XLU +0.23%...XLE +0.39% All nine sectors moved higher on Thursday. Financials, Consumer Discretionary, and Materials were stronger than the SPX +1.06%. Financial stocks stronger than XLF +2.96%: PNC, TRV, KEY, CB, MS, WFC, BK, ALL, ZION, AXP, USB, MET, PRU, TROW, MMC and ETFs UYG and FAS. Tech stocks stronger than XLK +0.47%: TXN, DELL, ADP, MA, IBM, INTC, ADBE, CSCO, AMAT, ORCL, SYMC, T, GLW and GOOG. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The SPX recovered Wednesday loss as price stayed inside the current horizontal flag pattern. PNC, GR, TRV, MMM, BDK, DOW and RTN moved higher after releasing earnings. After the close, AMZN reported earning of 45 cents vs. estimate of 33 cents. In after-hours trading AMZN gained more than $13 or +15%. Thursday’s Key Earnings: T, BDK, BMY, CELG, CNX, DHR, DO, EMC, GR, MCD, MMM, MRK, PNC, RTN, SGP, DOW, TRV, UNP, UPS, AMZN, AXP, BRCM, DECK, NFLX, NIHD, POT, ALK, BUCY, BNI, CA, CMG, JNPR, SYNA, LCC, WDC Friday’s Key Earnings: MSFT, WHR, SLB, HON, IVZ Guidance: The intermediate term trend is up while the short term trend is neutral in its short term horizontal flag pattern. The SPX bounced from support up to resistance. Wednesday is still the high day for the SPX, COMPQ and INDU. The SPX, COMPQ and INDU are still on Yellow Alert. Continue to watch for a potential break below Wednesday’s low for a short term exit signal. Many stocks formed bullish candle patterns, bull flags and support bounce moves. Check the charts you are trading for potential entry signals and any short term exit signals. Follow your rules. Breakout: MA, DE, FLIR, PCLN, CAT, ADSK, AAPL, JOYG, BUCY, FLS, AKAM, CAM, FCX, JCG, GOOG, NWSA, ADBE, AGU Potential Breakout Setups: AMZN, BDK, NKE, DOW, HANS, DD, POT, ORCL, WLT, WHR, APOL, AXP, V, BIDU Pulling Back: AMX Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: FWLT, XLNX, MRVL, X, TXN Flag Setups and Bounces in Progress: TXN, SPG, ZION, FAST, BAC, INTC, JEC, JCI, NTAP, FSLR, AGCO Potential Down Trend Setups: HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL +0.28 QCOM -0.33 GOOG +2.99 BIDU +9.68 NDX 100 stocks stronger than the NDX include: SHLD, CHKP, STX, URBN, OLGI, PPDI, LRCX, IACI, GENZ, CEPH, CMCSA, ISRG, HOLX, KLAC, RIMM, ROST, WCRX, CELG, BIDU, BBBY, CA, NTAP, INTU, LBTYA, CERN, DELL, WYNN, ADP, BIIB, ALTR, SBUX, JNPR, HANS, XLNX, FSLR, BRCM, INTC and PDCO. Stocks to Watch on Friday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, TDG, CLB, ESRX, NIHD, K, FLS, GXDX, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, AMX, APEI, BLUD, MUR, SPWRA, BYI, MHS, SNA, BKC, WMT, DLB, MOS, WAB, MON, X, ORCL, FSLR, ALGT, RBN Moving Above 30 DMA = 11 AMED, JEC, JOSB, PCP, PWR, RCI, VAR, WRC, GR, FAS, UYG Moving Below 30 DMA = 3 ESI, EBAY, PWRD Staying Below 30 DMA BAP, CHL, GILD, URE, USD, DLTR, GME, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, FAZ, BDX, BIIB, JCOM, FUQI, CBST, RIMM, MYGN, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral

Futures Pointing to a Flat Opening...

BMO – ES +0.50 and NQ -2.50 futures are flat to slightly lower in pre-market trading pointing to a flat to slightly lower open. AAPL +0.78, GOOG -2.28 and BIDU -1.82 are lower in pre-market trading. IBM +0.11, BAC +0.15 and GE +0.10 are mixed in pre-market trading. The Euro is down slightly in overnight trading and oil is down 62 cents in electronic trading. XLE is down 22 cents in pre-market trading. BDK reports 0.91 EPS versus a revised 0.90 estimate and raises guidance on Q4 to 68 to 78 cents compared with current estimate of 50 cents. BDK is +1.09 or 2.23% in pre-market trading. Thursday’s Key Earnings: T, BDK, BMY, CELG, CNX, DHR, DO, EMC, GR, MCD, MMM, MRK, PNC, RTN, SGP, DOW, TRV, UNP, UPS, AMZN, AXP, BRCM, DECK, NFLX, NIHD, POT, ALK, BUCY, BNI, CA, CMG, JNPR, SYNA, LCC, WDC SPX Support = 1,075…1,061 Resistance = 1,100…1,133 Trading Down: CNX, POT, AGU Trading Up: T, BDK, CELG, TRV Look at these Charts… (click image to enlarge) At the Open on Thursday SPY – QQQQ – XLE – HAL – AGU – POT – AAPL – PCLN – HANS – WYNN – FSLR – GOOG – FAS – AXP – ZION – ADSK – ADBE – AKAM – MA – ISRG – NKE – BDK – CAT – DOW – WLT – FUQI – WHR – JOYG – CAM – FCX – ARO – LVS – AA – USD – FLIR –

SPX Pulls Back with Financials...

DJIA - 92.12 -0.92% SP500 - 9.66 -0.89% COMPQ - 12.74 -0.59% Russell 2000 - 8.30 -1.35% Exchange NYSE NASD Advancing 999 890 Declining 2,038 1,825 Oil $81.37 +2.25 Gold $1,063.90 +5.90 SOX 322.67 -4.20 VIX 22.22 +1.32 The VIX moved up and did confirm the move down in the SPX on Wednesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLU +0.13%...XLK +0.05%...XLE -0.27% Weakest Sectors: XLF -1.91%...XLV -1.32%...XLY -1.30% Seven of nine sectors moved lower on Wednesday. Utilities, Technology, Energy, Industrials and Consumer Staples were stronger than the SPX -0.89%. Financial stocks stronger than XLF -1.91%: MS, USB, ICE, PNC, TROW, CME, C, SPG, CB, MET, AXP, TRV, MMC, AOC, PRU and RF. Tech stocks stronger than XLK +0.05%: AAPL, YHOO, SYMC, VZ, MSFT, MA, ADP and QCOM. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The SPX spent most of the day higher until an analyst downgrade of WFC from neutral to sell. During the last 45 minutes of trading, WFC fell from 30.25 to 28.90. The SPX fell 16 points in the last 45 minutes. CREE, SNDK and YHOO which had positive earnings after the close on Tuesday, showed strong stocks gains on Wednesday as did AAPL still strong from earnings Monday after the close. SNDK +9.54%, YHOO +2.85% and AAPL +3.10% had big gains even after pulling back from their high. CREE +11.49% closed near it high of the day. The SPX which touched 1,101.36 closed at the low end of it horizontal flag as did the COMPQ and INDU. The RUT clearly broke the low of the high day. After the close EBAY beat estimates by 1 cent but lowered its Q4 guidance to 0.38 to 0.40 against the street estimate of 0.40. Shares are down $1.13 or -4.51%. Wednesday’s Key Earnings: Symbol Earnings versus Estimates BA -2.22 vs. -2.12 ATI 0.01 vs. 0.03 WFC 0.56 vs. 0.37 MS 0.38 vs. 0.27 AMGN 1.49 vs. 1.27 EBAY 0.38 vs. 0.37 GENZ 0.31 vs. 0.44 AMR -0.93 vs. -0.95 LRCX 0.03 vs. -0.08 Thursday’s Key Earnings: T, BDK, BMY, CELG, CNX, DHR, DO, EMC, GR, MCD, MMM, MRK, PNC, RTN, SGP, DOW, TRV, UNP, UPS, AMZN, AXP, BRCM, DECK, NFLX, NIHD, POT, ALK, BUCY, BNI, CA, CMG, JNPR, SYNA, LCC, WDC Guidance: The intermediate term trend is up. The SPX bounced from resistance down to support. This is very similar to the price action in the last four horizontal flags since June that we illustrated in Tuesday’s post. (click image to enlarge) Wednesday is the high day in the SPX, COMPQ and INDU, each closing near its low of the day. The RUT did close below Monday’s low giving a short term exit signal. The SPX, COMPQ and INDU are on Yellow Alert. Look for a break below Wednesday’s low for a short term exit signal. Check the charts you are trading for potential short term exit signals. Follow your rules. Breakout: DE, FLIR, PCLN, CAT, ADSK, AAPL, JOYG, BUCY, FLS, AKAM, CAM, FCX, JCG, GOOG, NWSA Potential Breakout Setups: POT, ORCL, WLT, WHR, APOL, AXP, MA, V Pulling Back: DOW, ADBE, DD, INTC, AMZN, HANS, BDK, NKE, BIDU, AGU, AMX, BAC Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: SPG, ZION, FWLT, XLNX, MRVL, FAST, X, TXN Flag Setups and Bounces in Progress: JEC, JCI, NTAP, FSLR, AGCO Potential Down Trend Setups: HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL +6.16 QCOM +0.10 GOOG -0.62 BIDU -2.80 NDX 100 stocks stronger than the NDX include: ADSK, AAPL, YHOO, FLIR, SYMC, AMGN, PPDI, GRMN, NIHD, PCAR, EXPE, STLD, JOYG, MSFT, SRCL, JNPR, LIFE, ADP, QCOM, FISV, PDCO, PAYX, CA, CEPH, INTU, NTAP, GOOG, EBAY VRSN and CHKP Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, TDG, CLB, ESRX, NIHD, K, FLS, GXDX, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, ESI, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, AMX, APEI, BLUD, EBAY, MUR, SPWRA, BYI, MHS, SNA, BKC, WMT, DLB, MOS, WAB, MON, X, ORCL, FSLR, ALGT Moving Above 30 DMA = 2 RBN, PWRD Moving Below 30 DMA = 11 AMED, BAP, CHL, FAS, GILD, GR, JOSB, URE, USD, UYG, WRC Staying Below 30 DMA DLTR, GME, JEC, PCP, SNHY, URE, PETS, WCG, MON, X, PSYS, NTLS, PPD, FAZ, BDX, BIIB, JCOM, RCI, VAR, FUQI, CBST, RIMM, MYGN, PWR, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral

Futures Pointing to a Lower Open...

BMO – ES -5.50 and NQ -7.50 futures are higher in pre-market trading pointing to a higher open. AAPL +0.56, GOOG -1.78 and BIDU -1.74 are mixed in pre-market trading. IBM -0.75, BAC -0.09 and GE -0.12 are mixed in pre-market trading. The Euro is down slightly in overnight trading and oil is down $1.27 cents in electronic trading. XLE is down 63 cents in pre-market trading. BA reports -2.22 EPS versus -2.12 estimate and lowers full year guidance over $3. BA is -1.56 or -3.01% in pre-market trading. Wednesday’s Key Earnings: WFC, MS, AMGN, BA, EBAY, GENZ, ESI, MCD, UPS, AMR, T, CHKP, LRCX, ATI ATI 0.01 vs. 0.03 SPX Support = 1,075…1,061 Resistance = 1,100…1,133 Trading Down: BA, ISRG, ATI Trading Up: SNDK, CREE, YHOO

Look at these Charts… (click image to enlarge) At the Open on Wednesday SPY – QQQQ – XLE – HAL – AGU – POT – AAPL – PCLN – HANS – WYNN – FSLR – BIDU – GOOG – FAS – AXP – ZION – ADBE – AKAM – MA – JCI – ISRG – NKE – BDK – CAT – DOW – WLT – FUQI – FWLT – WHR – JOYG – CAM – FCX – ARO – LVS – AA – USD –

Modest Pullback at Horizontal Resistance...

DJIA - 50.71 -0.50% SP500 - 6.85 -0.62% COMPQ - 12.85 -0.59% Russell 2000 - 8.93 -1.43% Exchange NYSE NASD Advancing 1,047 741 Declining 2,007 1,987 Oil $79.09 -0.52 Gold $1,058.00 +0.50 SOX 326.87 -0.74 VIX 20.90 -0.59 The VIX moved down and did NOT confirm the move down in the SPX on Tuesday. The SOX moved down and did confirm the move down in the COMPQ. Strongest Sectors: XLP -0.11%...XLK -0.33%...XLE -0.64% Weakest Sectors: XLB -1.05%...XLY -1.01%...XLU -1.00% All nine sectors moved lower on Tuesday. Consumer Staples and Technology were stronger than the SPX -0.62%. Financial stocks stronger than XLF -0.78%: BK, KEY, RF, WFC, IVZ, PNC, JPM, USB, ICE, CME, TROW, GS, TRV and SCHW. Tech stocks stronger than XLK -0.33%: AAPL, TXN, HPQ, GLW, MSFT, T, DELL, GOOG, IBM, MA, and YHOO. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The broad indices gave back most of Monday’s gain even after gains from AAPL and CAT. The SPX held above Monday’s (the high day) low, but has been trading sideways in a narrow range for four consecutive days. The SPX is once again forming a horizontal flag pattern. The last four times since June that this pattern has been formed that SPX followed with a short term pull back. The COMPQ, INDU and RUT are also in a horizontal trading range. AAPL and CAT reported stronger than expected earnings, gapped higher and pulled back from their opening price. This now means that AA, INTC, JPM, GOOG, AAPL and CAT have failed to close higher than their open. After the close YHOO, SNDK and CREE reported better than expected earnings and gapped higher. ISRG which after the close reported better than expected earnings initially traded higher and then reversed and moved lower. Tuesday’s Key Earnings: Symbol Earnings versus Estimates CAT 0.64 vs. 0.06 DD 0.45 vs. 0.33 BTU 0.49 vs. 0.22 UNH 0.89 vs. 0.77 UAUA -0.43 vs. -0.94 PCP 1.54 vs. 1.63 KO 0.82 vs. 0.82 WLT 0.45 vs. 0.27 STT 1.04 vs. 1.02 GILD 0.78 vs. 0.67 STX 0.58 vs. 0.47 BK 0.54 vs. 0.47 ISRG 1.64 vs. 1.48 YHOO 0.13 vs. 0.07 ALGT 0.68 vs. 0.63 AMLN -0.19 vs. -0.29 CREE adj. 0.30 vs. 0.22 BIIB 1.04 vs. 1.12 SNDK 0.75 vs. 0.26 Wednesday’s Key Earnings: WFC, MS, AMGN, BA, EBAY, GENZ, ESI, MCD, UPS, AMR, T, CHKP, LRCX, ATI Guidance: The intermediate term trend is STILL up. The SPX is again moving sideways at horizontal resistance. Monday is the high day. We are again on Yellow Alert for a short term pull back signaled by a break of the low of the high day. If you don’t see the horizontal pattern just look at the first two weeks of June and August, the last week of August and the middle of September. (click image to enlarge) We are continuing to see big money discount the new earnings information and future guidance each day. So far AA, INTC, JPM, GOOG and now AAPL and CAT have not been able to take the SPX through the 1,100 resistance. This is why it is important to be prepared for a potential pull back. Additional earnings will be out tomorrow, Thursday and Friday. Since the trend is up take breakout and support bounce entry signals as they occur, while also watching for short term exit signals in the event of the break of the low of the high day. Monday is the high day on the SPX, INDU and COMPQ. Check the chart you are trading. Follow your rules. Breakout: PCLN, CAT, ADSK, AAPL, JOYG, BUCY, HANS, FLS, AKAM, AMZN, CAM, FCX, JCG, GOOG, NWSA Potential Breakout Setups: ORCL, FLIR, WLT, DE, INTC, DD, ADBE, WHR, DOW, APOL, AXP, MA, V Pulling Back: BDK, NKE, BIDU, AGU, AMX, BAC Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: SPG, ZION, FWLT, XLNX, MRVL, FAST, JCI, JEC, X Flag Setups and Bounces in Progress: NTAP, FSLR, AGCO, TXN, HOLX Potential Down Trend Setups: HOLX, STT, RIMM, MYGN, MON, LVS, WYNN AAPL +8.90 QCOM -0.75 GOOG -0.37 BIDU -2.30 NDX 100 stocks stronger than the NDX include: AAPL, APOL, CTSH, JNPR, FSLR, TEVA, PCAR, ISRG, BRCM, LRCX, CHRW, AMZN, EXPED, INFY, CHKP, JBHT, NVDA, MXIM, IACI, MSFT, STX, DELL and GOOG. Stocks to Watch on Wednesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, TDG, PCP, CLB, ESRX, NIHD, K, FLS, GXDX, BAP, WRC, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, ESI, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, UYG, AMX, APEI, BLUD, EBAY, FAS, MUR, SPWRA, CHL, BYI, WAB, MHS, GR, SNA, BKC, WMT, DLB, GILD, JOSB, MOS, WAB, MON, X, ORCL, FSLR, WRC, USD Moving Above 30 DMA = 2 ALGT, AMED Moving Below 30 DMA = 7 DLTR, GME, JEC, PCP, SNHY, URE, PWRD Staying Below 30 DMA PETS, WCG MON, X, PSYS, NTLS, PPD, FAZ, BDX, BIIB, JCOM, RCI, VAR, FUQI, CBST, RBN, RIMM, MYGN, PWR, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Neutral

Futures Pointing to a Higher Open on AAPL Earnings...

BMO – ES +5.00 and NQ +15.25 futures are higher in pre-market trading pointing to a higher open. AAPL +12.07, GOOG +3.35 and BIDU +3.98 are mixed in pre-market trading. IBM +0.19, BAC +0.14 and GE +0.05 are up slightly in pre-market trading. The Euro is up slightly in overnight trading and oil is up 1 cent in electronic trading. XLE is up 39 cents in pre-market trading. Tuesday’s Key Earnings: DD, BTU, STT, ISRG, MS, WLT, WFC, YHOO, ATI, ALGT, AMLN, BK, CREE, GILD, SNDK, STX, KO, UNH, UAUA, BIIB SPX Support = 1,075…1,061 Resistance = 1,100…1,133 Look at these Charts… (click image to enlarge) At the Open on Tuesday SPY – QQQQ – XLE – HAL – AGU – POT – AAPL – PCLN – HANS – WYNN – FSLR – BIDU – GOOG – FAS – AXP – ZION – ADBE – AKAM – MA – JCI – ISRG – NKE – BDK – CAT – DOW – WLT – FUQI – FWLT – WHR – JOYG – CAM – FCX – ARO – LVS – AA – USD – PWRD -

SPX 52 Week High...AAPL Blows Away Estimates...

DJIA + 96.28 +0.96% SP500 + 10.23 +0.94% COMPQ + 19.52 +0.91% Russell 2000 + 6.16 +1.00% Exchange NYSE NASD Advancing 2,241 1,739 Declining 808 960 Oil $79.61 +1.08 Gold $1,057.50 +6.60 SOX 327.61 +4.78 VIX 21.49 +0.06 The VIX moved up and did NOT confirm the move up in the SPX on Monday. The SOX moved up and did confirm the move up in the COMPQ. Strongest Sectors: XLB +1.53%...XLU +1.41%...XLE +1.31% Weakest Sectors: XLF +0.46%...XLP +0.57%...XLV +0.87% All nine sectors moved higher on Monday. Materials, Utilities, Energy, Consumer Discretionary, Technology and Industrials were stronger than the SPX +0.94%. Financial stocks stronger than XLF +0.46%: SPG, AXP, AFL, CME, PRU, SCHW, USB, MET, IVZ, CB, ALL, ZION, GS, MMC and ETF’s UYG and FAS. Tech stocks stronger than XLK +1.09%: TXN, ORCL, EBAY, YHOO, AMT, EMC, AMAT, IBM, T, INTC and GLW. Sector Watch Up Trending: XLK, XLB, XLY, XLV, XLP, XLE Horizontal Breakout: XLF, XLI, XLU Sideways: Down Trending: Key Resistance Levels: 1,100 = September 2008 Old Support 1,133 = Mid September 2008 Support Key Support Levels 1,075 = 875 Breakout Chart Target 1,061 = Sep 16 S1 Level 1,056 = Sep 25 R1 level 1,044 = October Horizontal Old Resistance 1,025 = 950 Breakout Chart Target The broad indices regained Friday’s pull back plus a few points while waiting for earnings from AAPL after Monday’s close. The SPX touched 1,100.17 before closing at 1,097.91, a new 52 week high. The COMPQ and INDU also closed at a 52 week high on Monday. Monday morning's Look ath the Charts had big moves... (click image to enlarge) Friday’s pull back which was driven by a negative reaction to earnings from IBM, BAC, GE and C was reversed as these stocks traded higher most of the day. Financial stocks pulled back during the last 90 minutes of trading and BAC, C and GE closed slightly lower. IBM closed up $1.42. Friday’s leaders GOOG traded higher but lagged the market on Monday while HAL gained another 2.14%. As of Monday’s close the SPX is up 40 points during the last eight trading days since AA released earnings. AAPL reported earnings of $1.82 versus $1.42 estimates. AAPL shares gapped up $12.54 on more than 9 million shares in after-hours trading. Look for AAPL to gap up Tuesday morning from Monday’s close of 189.86. Monday’s Key Earnings: AAPL 1.81 earnings versus 1.42 estimates TXN 0.42 earnings versus 0.40 estimates STLD 0.30 earnings versus 0.23 estimates ZION -1.41 earnings versus -1.24 estimates Tuesday’s Key Earnings: DD, BTU, STT, ISRG, MS, WLT, WFC, YHOO, ATI, ALGT, AMLN, BK, CREE, GILD, SNDK, STX, KO, UNH, UAUA, BIIB Guidance: The intermediate term trend is STILL up. The SPX traded in a narrow range Monday, making a new high close while awaiting AAPL earnings after the close. AAPL blew away estimates by 40 cents a share. Expect this to carry over to Tuesday morning’s market. Look for the market up trend to continue. As we said in Friday’s Guidance the market is in earnings season and big money will discount the new information in price as soon as they hear it. AAPL was discounted up over $12. On Monday several stocks had strong break outs at horizontal resistance and big bounces off support. Take breakout and support bounce entry signals as they occur while also watching for short term exit signals in the event of the break of the low of the high day. Monday was a new high day on many charts. Follow your rules. Breakout: BIDU, AGU, CAT, NKE, ADSK, AAPL, BDK, JOYG, BUCY, HANS, FLS, AKAM, AMZN, CAM, FCX, JCG, GOOG, NTAP, NWSA Potential Breakout Setups: ORCL, FLIR, WLT, DE, PCLN, INTC, DD, ADBE, WHR, DOW, APOL, AXP, MA, V Pulling Back: AMX, BAC, STT Potential C Patterns: C Pattern Breakout: Lower Close in Support Bounce: JEC, X Flag Setups and Bounces in Progress: FSLR, AGCO, TXN, SPG, ZION, FWLT, XLNX, MRVL, FAST, JCI, HOLX Potential Down Trend Setups: RIMM, MYGN, MON, LVS, WYNN AAPL +1.81 QCOM +0.10 GOOG +2.24 BIDU +15.23 NDX 100 stocks stronger than the NDX include: JOYG, VRSN, BIDU, NVDA, ISRG, GRMN, DISH, MICC, FSLR, SHLD, NIHD, ORCL, EXPED, EBAY, JNPR, NWSA, CTSH, YHOO, FLIR, LOGI, FISV, PCAR, SIAL, ADSK, URBN, STX, DTV, XRAY, PDCO, ROST, CHKP, XLNX, FWLT, ATVI and. LLTC. Stocks to Watch on Tuesday Leading Stocks Holding Above 30 DMA CTSH, AAPL, PCLN, TDG, PCP, CLB, ESRX, NIHD, K, FLS, GXDX, BAP, GME, WRC, BIDU, HDB, JW.A, ATW, EZPW, JOYG, TRLG, GPRO, PPD, DECK, VPRT, AMZN, GMCR, ACN, SLGN, FSLR, NFLX, HANS, DV, ESI, STRA, MCD, CPLA, HLF, SWN, AFAM, CAM, GES, ICE, UYG, AMX, APEI, BLUD, EBAY, FAS, MUR, SPWRA, CHL, BYI, WAB, MHS, GR, SNA, SNHY, USD, BKC, WMT, DLB, GILD, JOSB, MOS, WAB, URE, JEC, MON, X, ORCL Moving Above 30 DMA = 7 DLTR, FSLR, WRC, SNHY, USD, URE, PWRD Moving Below 30 DMA = 2 PETS, WCG Staying Below 30 DMA MON, X, AMED, PSYS, ALGT, NTLS, PPD, FAZ, BDX, BIIB, JCOM, RCI, VAR, FUQI, CBST, RBN, RIMM, MYGN, PWR, SYNA Intermediate Term Market Trend: Up Short Term Market Trend: Up